Hutchinson Capital Management

Item 5 - FEES AND COMPENSATION

ADVISORY FEES
HCM Wealth is compensated based upon a percentage of assets under management. Neither the Firm nor
its employees receive compensation in the form of commissions or other sales charges or services fees for
the purchase or sale of client securities or investment products. Typically, investment management fees
are paid in advance in quarterly installments at the beginning of each calendar quarter. Assets under
management are valued at the close of the market on the last day of the preceding quarter. The current
investment management fee schedule is 1.0% per annum of the first $1,000,000 in assets, plus 0.75% of
assets above $1,000,000 to $3,000,000, plus 0.5% of assets above $3,000,000 to $5,000,000, plus 0.40% of
assets above $5,000,000.

The Firm’s management fee will be calculated based on a percentage of the market value of all assets in
the client’s portfolio as of the last day of the quarter. All the assets managed by HCM Wealth, including
cash and cash equivalents and assets held on margin are included in the fee assessment unless specifically
excluded from the assessment at the Firm’s discretion.

The fees are negotiable under certain circumstances, at the sole discretion of HCM Wealth. For example,
clients whose accounts were established under prior fee schedules might be charged according to those
schedules or provided a discount based upon the current fee schedule. Based on the circumstances of the
client relationship, certain accounts of a client may not be charged investment management fees.

HCM Wealth generally requires new clients to place a minimum of $1,000,000 under management.
However, the Firm may accept accounts with assets below $1,000,000 and in these instances, fees will be
negotiated. For new clients and clients that no longer meet the minimum portfolio requirement, Hutchinson
has established a minimum annual management fee of $10,000, prorated and payable quarterly. At the
Firm’s sole discretion, it may waive the minimum fee requirement based upon factors that include but are
not limited to: the anticipated future earning capacity, anticipated future additional assets, dollar amount of
assets to be managed, related client portfolios, account composition, history of client relationship with the
Firm, account retention, and pro bono activities, related to the account.

In certain cases, clients may request that HCM Wealth purchase, maintain, or consolidate pre-existing or
other securities positions in custodial accounts maintained with the Firm that are not consistent with the
Firm’s investment strategy. In such cases, HCM Wealth will not charge a fee on such assets, with the
specific understanding that these are non-managed assets for which the client is responsible for determining
the suitability of maintaining such a position. The Firm will not sell such securities without specific written
instructions from the client.

Asset management fees will generally be automatically deducted from the client account on a quarterly
basis and details of the fee calculation are shown on an invoice provided in the client’s quarterly reports.
In some cases, fees will not be automatically deducted and the client will be invoiced on a quarterly basis
and pays the Firm by check. For those clients whose fees are automatically deducted, the client will give
written authorization to the custodian accounts permitting the Firm to be paid directly from their accounts
held by the custodian. In either case, the fee deduction transaction will be shown on the monthly statement
the client receives from the custodian. It is the client’s responsibility to verify the accuracy of the fee
calculation, as the custodian will not determine whether the fee is properly calculated. Clients are advised
to regularly check their custodian statements and to compare them to the reports provided by us.

In rare instances, HCM Wealth may negotiate hourly fees with respect to special projects. An example
would be if a client or prospective client requested a more comprehensive review of their overall financial
picture and beyond what is provided to most clients.

At no time will HCM Wealth accept or maintain custody of a client’s funds or securities except for
authorized fee deduction.

If assets are deposited into or withdrawn from a client’s account after the inception of a billing period and
depending upon the timing or size of such withdrawal or deposit, the fee payable with respect to such assets
may not necessarily be adjusted or prorated based on the number of days remaining in the billing period.
Accounts initiated or terminated during a calendar month will be charged a prorated fee.

Fees Related to Sub-Advised Dimensional Funds SMA Accounts and Other Independent Managers
For those clients electing to enroll all or a portion of their HCM Wealth portfolios into a DFA SMA program
or another Independent Manager(s), the investment management fee charged by DFA and the Independent
Manager(s) is separate from, and in addition to, HCM Wealth’s fee.

FINANCIAL PLANNING AND FINANCIAL CONSULTATION FEES
We charge on an hourly or flat fee basis for financial planning and financial consulting services. The fee
that we charge will be based on the scope and complexity of the planning/consultation engagement. Our
hourly fee is $350. Flat fees generally range from $3,000 to $5,000.

GENERAL FEE DISCLOSURE
The Firm believes its investment management and financial planning fees are competitive with the fees
charged by other investment advisors in the San Francisco Bay Area for comparable services. However,
comparable services may be available from other sources for lower fees than those charged by HCM
Wealth.

HCM Wealth does not sell any financial products such as annuities and insurance and receives no sales
commissions on investment products.

CUSTODIAN AND BROKERAGE FEES
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Item 7 - TYPES OF CLIENTS
The Firm’s clients generally consist of individual, family, trust, retirement plans and charitable organization
clients. The Firm has established a $1,000,000 minimum value of assets for establishing a client
relationship with the Firm, although multiple accounts for the same client may be aggregated to meet this

minimum. This minimum may be changed or even waived in certain circumstances at the discretion of the
Firm. In addition, for new clients and clients that no longer meet the minimum portfolio requirement, we
have established a minimum annual management fee of $10,000. These minimum requirements may be
changed or waived in certain circumstances at the discretion of the Firm. As a result of the Firm’s minimum
account size and minimum fee requirements, HCM Wealth’s services may not be appropriate for everyone.
Particularly for smaller accounts, other investment advisors may provide somewhat similar services for
lower compensation, although still others may charge more for similar services.